New Regime for Tobacco Products
To prevent contraband tobacco production from entering Canada, and to ensure the integrity of the tobacco tax system which supports the Government’s health objectives, the Canada Revenue Agency (CRA) is fulfilling a new excise duty stamping regime for tobacco products. This new regime is the 3rd element of the CRA’s Tobacco Compliance Strategy, which is aimed to address the issues of counterfeit and contraband tobacco products in Canada, and which targets all areas of the tobacco products. The new stamping regime will:
The other two parts of the Tobacco Compliance Strategy are: outreach and monitoring of tobacco growers and increased audits of tobacco producers.
The CRA has awarded a contract to one supplier for the production, design and distribution of new stamps. The tobacco stamps will appear on both imported duty-paid and domestically-produced tobacco products that are sold and distributed in Canada. The price of the stamp will be covered by tobacco manufacturers and importers through the sale of the stamp. The new excise duty stamps for tobacco products contain a number of security features that are very costly and difficult to counterfeit, including the following:
The stamps are in prototype form, and the CRA is moving ahead with the implementation stage, in consultation with importers, industry and governmental stakeholders. The new stamp is expected to be fully made in early 2010.
